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Matson Company Incurred Actual Direct Labor Costs of $70,500 in April

Question 7

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Matson Company incurred actual direct labor costs of $70,500 in April for 6,000 direct labor hours, although the standard labor cost for output produced was only $67,200 (6,400 hours at $10.50 per hour) .
-Refer to the above data. Matson's labor efficiency variance for April is:


A) $3,300 unfavorable.
B) $7,500 unfavorable.
C) $4,700 favorable.
D) $4,200 favorable.

Correct Answer:

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